the proper move would be cease xCloud services in the UK and offer all ABK games everywhere else on game pass except the UK, the CMA isn't protecting consumers, it's harming them.
That might work as a negotiated deal with the CMA but it would let the deal go through which wouldn't please SONY which is who the CMA answers to, judging by their last minute switch. So such a deal is unlikely.
What would be needed, and what CNBC was asking, is a total unilateral MS exit from the UK. Which, given Nadella's oh-so-diplomatic reply he did *not* rule out. Nadella is clearly from the "speak softly and carry an AR-15" school of business.
If we carefully read his reply: "The fundamental logic of this deal, bringing more competition and more opportunity for publishers and gamers still holds..." and "We obviously respect the sovereignty of the United Kingdom and the CMA to decide what's good [for them]."
...he is clearly saying they have the right to choose what they do and Microsoft reserves to itself the same right. Which is to carry the deal through. (They can afford the PR cost after all.)
Less diplomatically, if the UK feels they don't need Microsoft, Microsoft *knows* they can more easily do without the UK than without ABK. No skin off their back.
In THE GODFATHER they called it going to the mattresses.